In the 2012/2013 marketing year, that ran Sept. 1, 2012, to Aug. 31, 2013, Mexico was the top importer of U.S. sorghum importing more than 2.1 million metric tons (82.7 million bushels) valued at nearly $585 million. Meanwhile, in the 2013/2014 marketing year through June 19, 2014, Mexico’s outstanding sales and accumulated exports only total 108,000 tons (4.2 million bushels). This decline is driven in part by China’s surge in purchasing U.S. sorghum, which has prompted Mexican buyers to shift to U.S. corn. However, Mexico will always be a long-term U.S. customer due to its shared border with the United States and the Mexican industry’s familiarity with U.S. sorghum.
This past week, the U.S. Grains Council, in cooperation with the United Sorghum Checkoff Program, held a strategic planning meeting with U.S. sorghum customers in Mexico. During the meeting the Council discussed ways to strengthen the relationship between the U.S. sorghum industry and its buyers in Mexico.
“Northern Mexico is a natural market for Texas sorghum exports,” said USGC Director in Mexico, Julio Hernandez. “However, that area in Mexico is also a strong producer of sorghum too. Therefore quality, availability and price remain important factors.”
Twenty years after the implementation of the North American Free Trade Agreement, Mexico’s livestock industry continues to expand its production and reliance on U.S. grain supplies. The Council is committed to helping the Mexican livestock industry improve its grain origination and risk management practices in order to take advantage of its unique position as a neighbor to the world’s largest grain exporter.
“The Council has been exploring the potential for U.S. sorghum exports to Mexico,” Hernandez said. “Both U.S. sorghum exporters and Mexican buyers want to improve origination and trade flow and the Council is working so we can be part of the solution.”